Nebraska takes OpenAI to court in first US Age-Appropriate Design Code case against an AI company
Nebraska is seeking to hold OpenAI accountable under its Age-Appropriate Design Code in a case that could extend children’s protections to AI services.

Nebraska has become the first US state to take an AI company to court under the framework of the Age-Appropriate Design Code. In the case, filed on 14 October 2026, Nebraska argues that ChatGPT violates the state’s Age-Appropriate Online Design Code (AADC), seeking penalties of up to $50,000 per violation.
This complaint is part of a broader legal push: Nebraska is among eight US states who are suing OpenAI for alleged privacy and safety violations on ChatGPT.
Nebraska’s Attorney General Mike Hilgers said:
“OpenAI has been misleading the public into believing that ChatGPT is a safe tool that puts safety first. But the reality is different from the misrepresentations. Designed to be overly agreeable and feign human compassion, ChatGPT has proven that it can be dangerous to vulnerable users, like children, including coaching users to commit suicide or to harm other people.
“There is a growing body of research indicating that ChatGPT is also harming critical thinking skills, encouraging paranoias and delusions, offering dangerous medical advice, and promoting unhealthy behaviors and relationships.”
Under the Nebraska’s Age-Appropriate Design Code, services must:
- Apply the highest available safety protections by default;
- Limit the collection and use of children’s personal data;
- Give children accessible controls over their privacy and interactions with the service;
- Allow children to limit their time spent on a service and opt out of unnecessary design features;
- Prohibit dark patterns and advertisements for certain restricted products;
- Provide parental tools and ways to report harm.
These requirements reflect the need for online services to take responsibility for the impact their design decisions can have on children.
First introduced in the UK based on 5Rights principles and since promoted globally by 5Rights as a model for legislators and regulators, age-appropriate design codes require online services to consider children’s rights and safety when designing their products. In the US, six states have now passed age-appropriate design codes: California, Maryland, Nebraska, Vermont, New Jersey and South Carolina.
Speaking about the case, Leanda Barrington-Leach, Executive Director at 5Rights said:
“The companies behind AI chatbots are well aware that millions of children use their platforms every day, and the evidence of harm is piling up. There is no excuse for companies treating children as guinea pigs for untested products. Generative AI was rolled out without considering – let alone rigorously testing – its impact on children and their developing brains.
“This case sends a clear message that if a product reaches children, it must be safe by design and default. AI is no exception. If companies fail to comply with this duty of care, they must be held liable.”
